Veto may cause government shutdown

November 10, 1995
Web posted at: 11:40 a.m. EDT

From Correspondent Kelli Arena

WASHINGTON (CNN)--Washington is bracing for a shutdown. A presidential veto
could bring an abrupt halt to many government programs as early as Tuesday and
repercussions would be felt far beyond the beltway.

If you'll need a new passport, or waiting for a veterans benefits check, or
even planning a visit to the Smithsonian, be prepared. If a new temporary
spending bill is not enacted by midnight Monday, you can just forget about all of
the above and a lot more.

"Let's make no mistake about it. When you shut down government services to the
people of this country it is going to have an impact on those who, frankly, are
innocent victims of this poltical debate," says Leon Panetta, the
White House Chief of Staff.

Most non-essential government programs would be shut down or seriously scaled
back, resulting in many inconveniences, some more serious than others. For
example, the White House says new Social Security
applications would not be processed. In addition, about 800,000 federal workers
would be sent home.

"People sometimes forget how many government employees there are in the country
and if there is a government shutdown on Tuesday, says Greg Valliere, director
of the Washington Research Group, I think it could have a ripple effect
throughout the entire economy, with people not spending, with people staying at
home." (153K AIFF sound or 153K WAV sound)

The General Accounting Office estimates if the government were to shut down for
three business days it could cost tax-payers as much as $600 million.

Federal agencies began drawing up shutdown plans in August. White House Budget
Director Alice Rivlin is expected to release final details on Saturday.

The last time this happened was over the Columbus Day weekend in 1990 so the
economic damage was less severe. That shutdown, according to the GAO, cost
taxpayers $3.4 million.